Correlation Between Jyske Bank and HomeStreet
Can any of the company-specific risk be diversified away by investing in both Jyske Bank and HomeStreet at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Jyske Bank and HomeStreet into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Jyske Bank AS and HomeStreet, you can compare the effects of market volatilities on Jyske Bank and HomeStreet and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Jyske Bank with a short position of HomeStreet. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jyske Bank and HomeStreet.
Diversification Opportunities for Jyske Bank and HomeStreet
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Jyske and HomeStreet is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Jyske Bank AS and HomeStreet in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on HomeStreet and Jyske Bank is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Jyske Bank AS are associated (or correlated) with HomeStreet. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of HomeStreet has no effect on the direction of Jyske Bank i.e., Jyske Bank and HomeStreet go up and down completely randomly.
Pair Corralation between Jyske Bank and HomeStreet
Assuming the 90 days horizon Jyske Bank AS is expected to under-perform the HomeStreet. But the pink sheet apears to be less risky and, when comparing its historical volatility, Jyske Bank AS is 20.34 times less risky than HomeStreet. The pink sheet trades about -0.01 of its potential returns per unit of risk. The HomeStreet is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 672.00 in HomeStreet on August 31, 2024 and sell it today you would earn a total of 516.00 from holding HomeStreet or generate 76.79% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 99.73% |
| Values | Daily Returns |
Jyske Bank AS vs. HomeStreet
Performance |
| Timeline |
| Jyske Bank AS |
| HomeStreet |
Jyske Bank and HomeStreet Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jyske Bank and HomeStreet
The main advantage of trading using opposite Jyske Bank and HomeStreet positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jyske Bank position performs unexpectedly, HomeStreet can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in HomeStreet will offset losses from the drop in HomeStreet's long position.| Jyske Bank vs. Baraboo Bancorporation | Jyske Bank vs. Schweizerische Nationalbank | Jyske Bank vs. Danske Bank AS | Jyske Bank vs. Absa Group Limited |
| HomeStreet vs. Heartland Financial USA | HomeStreet vs. Heritage Commerce Corp | HomeStreet vs. Business First Bancshares | HomeStreet vs. German American Bancorp |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Portfolio Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
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